Wednesday, July 1, 2020

Charlotte Area Real Estate Market in Summer 2020 Remains Strong and Steady


Going into July of 2020, economic, political and social storms seem to churn all around us.  Just as it seemed re-opening was well underway IN North Carolina and the COVID-19 crisis might be winding down, we received news of an increase in cases.  The governor thereafter delayed Phase 3 re-opening by another 21 days.  We remain in Phase 2, where real estate services are deemed “essential” and are permitted to resume, subject to restrictions and precautions such as social distancing and the wearing of face masks.  So how does all of this seem to be affecting the Charlotte area real estate market?

The statistics published by the Canopy Realtor Association (the Charlotte area association of Realtors) sums up market health pretty well.  Year-over-year data comparing May 2019 to May 2020, pending sales of all types of residential real estate priced between $200,001 and $300,000 were up 14.4%.  The number of days a property remained on the market before going under contract was down 5.4%. A huge 97.5% of all sales occurred at or above the listing price.  Why?  The obvious reason is that inventory of residential property available for sale and purchase was down a whopping 44.7% in that $200,001 - $300,000 price range.  Inventory of single family homes was down 38.9% year-over-year.  A sortable summary of real estate market statistics is available from Canopy online.

What does all this mean?  Sales are up.  Prices are up.  Inventory is down.  Days on market are down.  In fact, mortgage interest remains at ultra-low rates on fixed rate financing throughout the United States.  All of this brings buyers to the market who are ready, willing and more than able to purchase property, while fewer properties are available for purchase.  This creates what is typically called a “Seller’s Market.”

One conclusion one could draw from all of this is it is an extremely favorable time to sell a home.  The likelihood that a seller will get full fair market value in a shorter period of time on the market is high.  Median sales prices have risen substantially in the Charlotte area, from $195,000 in 2017 to $250,000+ in 2020.  Individual home prices will vary, based on precise location, size, condition, etc. of course.  But this might be a very good time for what they call in investment markets “profit-taking.”

Despite all the headwinds—political unrest… COVID-19 uncertainty… and the economic turmoil caused by both, the real estate market in the Charlotte metropolitan area remains remarkably strong and steady going into the summer of 2020.  Underlying market conditions, from inventory of homes for sale to ultra-low mortgage interest rates, indicate that this market strength is likely to continue into the fall. 

For more information and to search the entire Charlotte area MLS system for homes, townhouses, condos, etc.—including foreclosures and short sales—go to the Home Page of our web site.  While on our site, browse our Client Reviews.


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